Live Oak Bancshares Inc (LOB) 2023 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Q1 2023 Live Oak Bancshares Earnings Call. (Operator Instructions) This call is being recorded on Thursday, April 27, 2023.

女士們先生們，早上好，歡迎來到 2023 年第一季度 Live Oak Bancshares 收益電話會議。 （操作員說明）此通話記錄於 2023 年 4 月 27 日星期四。

I would now like to turn the conference over to Mr. Greg Seward, Chief Risk Officer and General Counsel. Please go ahead.

我現在想將會議轉交給首席風險官兼總法律顧問 Greg Seward 先生。請繼續。

Thank you, and good morning, everyone. Welcome to Live Oak's First Quarter 2023 Earnings Conference Call. We are webcasting live over the Internet, and this call is being recorded. To access the call over the Internet and review the presentation materials that we will reference on the call, please visit our website at investor.liveoakbank.com and go to the Events & Presentations tab for supporting materials. Our first quarter earnings release is also available on our website.

謝謝大家，早上好。歡迎來到 Live Oak 2023 年第一季度收益電話會議。我們正在通過 Internet 進行網絡直播，並且正在錄製此通話。要通過 Internet 訪問電話會議並查看我們將在電話會議中參考的演示材料，請訪問我們的網站 investor.liveoakbank.com 並轉到“活動和演示”選項卡以獲取支持材料。我們的第一季度收益發布也可在我們的網站上獲取。

Before we get started, I would like to caution you that we may make forward-looking statements during today's call that are subject to risks and uncertainties. Factors that may cause actual results to differ materially from our expectations are detailed in the materials accompanying this call and in our SEC filings. We do not undertake to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of today's call. Information about any non-GAAP financial measures referenced, including reconciliation of those measures to GAAP measures, can also be found in our SEC filings and in the presentation materials.

在我們開始之前，我想提醒您，我們可能會在今天的電話會議上做出受風險和不確定因素影響的前瞻性陳述。本次電話會議隨附的材料和我們向美國證券交易委員會提交的文件中詳細說明了可能導致實際結果與我們的預期存在重大差異的因素。我們不承諾更新前瞻性陳述以反映今天電話會議之後可能出現的情況或事件的影響。有關所引用的任何非 GAAP 財務措施的信息，包括這些措施與 GAAP 措施的協調，也可以在我們的 SEC 文件和演示材料中找到。

I will now turn the call over to Chip Mahan, our Chairman and Chief Executive Officer.

我現在將電話轉交給我們的董事長兼首席執行官 Chip Mahan。

Thanks, Greg, and welcome to our Q1 earnings call. We are obviously not pleased with $0.01 a share, but let's look under the covers and see if there is more.

謝謝，格雷格，歡迎來到我們的第一季度財報電話會議。我們顯然對每股 0.01 美元不滿意，但讓我們深入了解一下，看看是否還有更多。

Moving to Slide 4. I'll make a few comments relative to these questions. What do deposits look like? How liquid are you? House credit? What happened with earnings this quarter? Are you on a path to grow? I will then turn the call over to Huntley and BJ to dig in.

轉到幻燈片 4。我將就這些問題發表一些評論。存款是什麼樣子的？你有多流動？房子信用？本季度的收益如何？你在成長的路上嗎？然後我會把電話轉給 Huntley 和 BJ 來挖掘。

It is my belief that the events surrounding the closure of Silicon Valley Bank and Signature Bank will prove to be a seminal moment for this industry. It has been almost 28 years ago, October of 1995 that we launched the first pure Internet bank in the United States. Since then, I have never seen the need for physical branches and the inherent cost to support that particular deposit franchise.

我相信圍繞矽谷銀行和 Signature Bank 關閉的事件將被證明是這個行業的開創性時刻。差不多 28 年前，也就是 1995 年 10 月，我們在美國推出了第一家純互聯網銀行。從那時起，我從未見過實體分支機構的必要性以及支持特定存款特許經營權的內在成本。

Technology that affects bank infrastructure support has made exponential gains over the last several years. It almost feels like Moore's Law is creating Banking 2.0. Many will recall that Gordon Moore, the Co-Founder of Fairchild Semiconductor and the former CEO of Intel, predicted in 1965 that fundamentally computing power or the number of components on an integrated circuit would double every year. He revised that in 1975 to double every 2 years. He was right. It feels like this decade-long presence of cloud-native API-first solutions is finally creeping into the day-to-day operations of commercial banks.

影響銀行基礎設施支持的技術在過去幾年中取得了指數級增長。幾乎感覺摩爾定律正在創造銀行業 2.0。許多人會記得 Fairchild Semiconductor 的聯合創始人兼英特爾前首席執行官戈登摩爾在 1965 年預測，從根本上講，計算能力或集成電路上的組件數量將每年翻一番。他在 1975 年修改為每 2 年翻一番。他是對的。感覺這種存在了十年之久的雲原生 API 優先解決方案終於滲透到商業銀行的日常運營中。

Four years ago, we spent a great deal of time perfecting online account opening at Live Oak Bank. Most banks can now do the same. Since it is so easy to move money digitally, why leave your money the bank that offers less than market rates? As deposit betas increase, as rates continue to rise, we are thankful the potential repricing of an entire book of lower-cost deposits is not part of our business model. That trend has begun and it is irreversible. The customer deserves and will find market rates for their savings in operating accounts.

四年前，我們花了很多時間完善 Live Oak Bank 的在線開戶。大多數銀行現在也可以這樣做。既然以數字方式轉移資金如此容易，為什麼要把錢留在提供低於市場利率的銀行呢？隨著存款貝塔係數的增加，隨著利率的持續上升，我們很慶幸對整本低成本存款進行潛在的重新定價並不是我們商業模式的一部分。這種趨勢已經開始，而且是不可逆轉的。客戶應得併會發現他們在運營賬戶中的儲蓄的市場利率。

Inside our own Canapi initiative that has raised over $1.5 billion from 70 banks, we see it every day. Next-gen fintech companies are building software in a cloud-native API-first environment that can get to market very quickly and provide a wide range of solutions to everyday bank customers.

在我們自己的 Canapi 計劃中，我們每天都能看到它從 70 家銀行籌集了超過 15 億美元的資金。下一代金融科技公司正在雲原生 API 優先環境中構建軟件，這些軟件可以快速上市並為日常銀行客戶提供廣泛的解決方案。

Additionally, there is a massive amount of capital sitting on the sideline to reward the winners in this space. It is fun to have a front row seat. So yes, what do deposits look like and how liquid are you? After the SVB and Signature event, it was published that the average bank in America had uninsured deposits of 44% of their total deposits. We were 18%.

此外，還有大量資金坐在場邊以獎勵該領域的贏家。坐在前排座位很有趣。所以，是的，存款是什麼樣的，你的流動性如何？在 SVB 和 Signature 事件之後，據報導美國平均每家銀行的未保險存款佔其總存款的 44%。我們是 18%。

Many banks were scrambling to prepare for a run on their back. In a matter of hours, we have between 3x and 4x the amount of all uninsured Live Oak deposits in cash, check that box. Relative to deposits in general, Huntley and BJ are going to describe our growth for the quarter and immediately thereafter. Check that box. Relative to credit quality and all metrics remain positive. Nonaccruals of 65 bps and over 30-day past dues of only 13 bps, which in dollar amount is just under $7 million for a $10 million bank, not bad. Check that box.

許多銀行都在爭先恐後地準備擠兌。在幾個小時內，我們有 3 到 4 倍的所有未投保的 Live Oak 現金存款，請選中該框。相對於一般的存款，Huntley 和 BJ 將描述我們本季度和之後的增長。選中那個框。相對於信用質量和所有指標保持積極。 65 個基點的非應計費用和僅 13 個基點的 30 天以上的逾期會費，對於一家 1000 萬美元的銀行來說，以美元計算，這還不到 700 萬美元，這還不錯。選中那個框。

Lastly, on earnings and growth. I wish I had not taken accounting pass/fail in college. We had the best quarter ever for loan originations, which in large part caused another quarter with an outsized CECL provision. The last weeks of the quarter impacted fair value in servicing asset revaluations by $6.3 million. And looks here is another $3 million onetime increase in the reserve for unused lines of credit. Accounting black boxes and mumbo jumbo that translates into excuses.

最後，關於收益和增長。我希望我在大學時沒有通過/失敗會計。我們有有史以來最好的貸款發放季度，這在很大程度上導致了另一個季度的 CECL 準備金過大。本季度的最後幾週對服務資產重估的公允價值產生了 630 萬美元的影響。看這裡是未使用信貸額度準備金的另外 300 萬美元一次性增加。會計黑匣子和可以轉化為藉口的龐然大物。

Tom Brown has a consulting firm and a hedge fund that issues weekly letter read by most of us on this call. Last week, he did a piece on my friend, Terry Turner, Co-Founder of Pinnacle Bank in Nashville. Brown points out that Pinnacle in its first decade provided the second best total return to shareholders of publicly traded banks. In Terry's first quarter call, he made the point that analysts go from one worry to another, while Pinnacle Bank keeps running the company with its core principles. It feels remarkably the same here.

湯姆·布朗 (Tom Brown) 有一家諮詢公司和一家對沖基金，每週都會發布我們大多數人在這次電話會議上閱讀的信件。上週，他發表了一篇關於我朋友特里·特納的文章，他是納什維爾 Pinnacle Bank 的聯合創始人。 Brown 指出，Pinnacle 在其第一個十年中為上市銀行的股東提供了第二好的總回報。在特里的第一季度電話會議上，他指出分析師們的擔憂是從一個擔憂到另一個擔憂，而 Pinnacle Bank 則繼續以其核心原則運營公司。這裡的感覺非常相似。

Here's what I can tell you. We have the most technologically advanced small business lending franchise in America. The platform for growth is proven. The technology is proven. The results are proven. The culture is proven. As this next-generation technology and our folks walk across the balance sheet to the liability/deposit side, our future results will speak for themselves.

這就是我可以告訴你的。我們擁有美國技術最先進的小企業貸款專營權。增長的平台是經過驗證的。該技術已得到驗證。結果證明。文化得到證明。隨著這項下一代技術和我們的員工從資產負債表走到負債/存款方，我們未來的結果將不言自明。

Over to Huntley and BJ for more details.

有關詳細信息，請聯繫 Huntley 和 BJ。

Thanks, Chip. Chip highlighted some of the questions in the industry right now around deposits, liquidity and credit, and we're going to try to unpack those for you in a little more detail this morning. I'm going to start with safety and soundness focusing primarily on what happened since the middle of March and how we're positioned before turning over to BJ to go through the quarter and the outlook.

謝謝，奇普。 Chip 強調了該行業目前圍繞存款、流動性和信貸的一些問題，今天早上我們將嘗試為您更詳細地解開這些問題。我將從安全和穩健開始，主要關注自 3 月中旬以來發生的事情以及我們在轉向 BJ 之前的定位，以了解本季度和前景。

So starting on page -- on Slide 5, the stress that we've seen in the industry in the last 6 weeks highlighted what we've consistently said that safety and soundness comes first always. We talk a lot about conservative credit underwriting, but safety and soundness also means making sure we have ample liquidity to protect our depositors, our borrowers, our employees and our shareholders.

因此，從第 5 頁開始，我們在過去 6 週內在行業中看到的壓力突出了我們一貫所說的安全和穩健永遠是第一位的。我們經常談論保守的信貸承保，但安全和穩健也意味著確保我們有充足的流動性來保護我們的儲戶、借款人、員工和股東。

You can see some of the highlight metrics here around the strength of our balance sheet. We ended the quarter with over $4 billion of cash and available liquidity, as Chip mentioned, over 3x coverage for our uninsured deposits. Minimal borrowings, low overall levels of uninsured deposits and no pledged securities. And despite the events of late March, we ended up growing our customer deposit portfolio for the quarter, and we've seen solid growth thus far in April.

你可以在這裡看到一些圍繞我們資產負債表實力的突出指標。正如 Chip 提到的那樣，我們在本季度結束時擁有超過 40 億美元的現金和可用流動資金，我們未投保存款的覆蓋率超過 3 倍。借款最少，未投保存款的總體水平較低，並且沒有抵押證券。儘管發生了 3 月下旬的事件，但我們最終增加了本季度的客戶存款組合，而且我們在 4 月份看到了穩健的增長。

We'll talk a little more about credit metrics here shortly, but overall trends are consistent with our expectations. As Chip mentioned, NPAs and past dues are basically flat over the past year on a percentage basis at 65 basis points and 13 basis points. We did see a couple of charge-offs in the quarter that BJ will talk about. But overall, we continue to feel really positive about how our borrowers are navigating this environment.

我們稍後會在這裡詳細討論信用指標，但總體趨勢與我們的預期一致。正如 Chip 所提到的，NPA 和過去的欠款在過去一年中基本上持平，分別為 65 個基點和 13 個基點。我們確實在 BJ 將要談論的那個季度看到了一些沖銷。但總的來說，我們繼續對我們的借款人如何應對這種環境感到非常樂觀。

As concerns have grown around investor commercial real estate, specifically in office buildings, we thought we'd highlight that we have basically no exposure there. Our CRE is over 70%, SBA and USDA and virtually all owner-occupied or in specific operating categories like senior housing and self-storage.

由於投資者對商業房地產的擔憂不斷增加，特別是在辦公樓中，我們認為我們要強調的是我們在那里基本上沒有風險敞口。我們的 CRE 超過 70%，SBA 和 USDA 以及幾乎所有業主自住或特定經營類別，如高級住房和自助倉儲。

After liquidity and credit comes capital and our ratios remain solid across the board. You've all seen us talk about the [Mahan] ratio before. Our Tier 1 capital plus fair value mark plus reserves to unguaranteed loans. That ratio at over 20% continues to give us a lot of comfort that we can continue to support small businesses through an uncertain economy.

在流動性和信貸之後是資本，我們的比率全面保持穩定。你們之前都看過我們談論 [Mahan] 比率。我們的一級資本加上公允價值標記加上無擔保貸款準備金。這個超過 20% 的比率繼續給我們很大的安慰，因為我們可以在不確定的經濟中繼續支持小企業。

When BJ goes through the quarter, you'll see both a reserve build and a fair value adjustment on loans. And while both of those impact earnings for the quarter, they are noncash items that further support our capital position.

當 BJ 經歷這個季度時，您會看到準備金增加和貸款的公允價值調整。雖然這兩者都會影響本季度的收益，但它們是進一步支持我們資本狀況的非現金項目。

On Page 6, just a quick recap of a few more liquidity metrics we've covered, especially when compared to the broader banking industry, we feel like we're in a really solid place. We'll probably continue to run cash balances and liquidity a little higher than usual for a while, which will impact margin a little bit, but it feels like the prudent course.

在第 6 頁，快速回顧一下我們已經涵蓋的更多流動性指標，特別是與更廣泛的銀行業相比，我們覺得我們處於一個非常穩固的位置。在一段時間內，我們可能會繼續讓現金餘額和流動性比平時略高一些，這會對利潤率產生一點影響，但這是一個謹慎的做法。

On Page 7, we highlight some additional details on our deposit franchise. You can see on the top right that through mid-March, we were growing largely as planned, with customer deposit growth up over 6% with no changes in our savings rates, and you can also see the planned runoff of some of our broker deposits. The back half of March, we saw just over $250 million of runoff of uninsured customer deposits as funds shifted to banks deemed either too big to fail or into money markets.

在第 7 頁，我們強調了一些關於我們的存款特許經營權的額外細節。您可以在右上角看到，到 3 月中旬，我們基本上按計劃增長，客戶存款增長超過 6%，我們的儲蓄率沒有變化，您還可以看到我們的一些經紀人存款的計劃流失. 3 月下半月，由於資金轉移到被認為大到不能倒閉的銀行或進入貨幣市場，我們看到超過 2.5 億美元的未投保客戶存款流失。

As a result of the increased competition in the market, we increased our savings rate 50 basis points in late March and added additional wholesale deposits to make sure we had ample liquidity to maintain our growth trajectory. We ended the quarter with customer deposits up 2.7% linked quarter. And that outflow had reversed itself by the end of March, and we've seen solid customer growth so far in April with growth up over 1.3% month-to-date.

由於市場競爭加劇，我們在 3 月底將儲蓄率提高了 50 個基點，並增加了額外的批發存款，以確保我們有充足的流動性來維持我們的增長軌跡。本季度末，我們的客戶存款環比增長 2.7%。到 3 月底，這種外流已經逆轉，4 月份到目前為止，我們看到客戶穩健增長，本月迄今增長超過 1.3%。

The most significant contributor to that growth has been our business savings accounts, which have doubled since the start of 2022 and the balances now exceed our consumer savings accounts.

對這一增長做出最大貢獻的是我們的企業儲蓄賬戶，自 2022 年初以來已經翻了一番，現在的餘額已經超過了我們的消費者儲蓄賬戶。

Our unique funding model, as Chip talked about, gathering deposits primarily through branchless savings and CDs, has been a highly efficient way to support the growth of our loan portfolio. Without the cost of a branch network, we've always focused on paying a competitive rate to our deposit customers. So the implications of our replacing our market-based savings accounts with alternative sources, whether they be wholesale deposits or borrowings, has been much less impactful for us than the others in the industry. Our model has also been built in extremely granular diversified portfolio of deposit customers with low average balances and overall low level of uninsured deposits.

正如 Chip 所說，我們獨特的融資模式主要通過無網點儲蓄和 CD 收集存款，這是支持我們貸款組合增長的高效方式。在沒有分支網絡成本的情況下，我們始終專注於為我們的存款客戶支付有競爭力的利率。因此，我們用其他來源取代基於市場的儲蓄賬戶的影響，無論是批發存款還是藉款，對我們的影響遠小於業內其他人。我們的模型還建立在極其細化的多元化存款客戶組合中，平均餘額較低，未保險存款的總體水平較低。

On Page 8, Chip highlighted these metrics in his introductions in quarters past, the significant amount of government guaranteed loans in our portfolio, our track record of credit quality with the SBA and our loan loss reserves, all significantly better than the industry.

在第 8 頁上，奇普在過去幾個季度的介紹中強調了這些指標，我們的投資組合中有大量政府擔保貸款，我們在 SBA 的信貸質量記錄和我們的貸款損失準備金，都明顯好於行業。

We also added a few thoughts on our credit philosophy and how we take care of our portfolio. We continue to focus on government guaranteed lending and lending to low-risk industries like professional services that are less cyclical and concentrated. We stay really close to our customers. No one talks to them as often as we do and we believe that our lack of sales commissions lead to better outcomes for our customers and our portfolio.

我們還對我們的信用理念以及我們如何管理我們的投資組合添加了一些想法。我們繼續專注於政府擔保貸款和向低風險行業提供貸款，例如周期性較弱且集中度較低的專業服務行業。我們非常貼近我們的客戶。沒有人像我們一樣經常與他們交談，我們相信我們沒有銷售佣金可以為我們的客戶和我們的產品組合帶來更好的結果。

All in all, we continue to feel confident in the quality of our borrowers and their ability to navigate an economic environment punctuated with higher interest rates and slower growth.

總而言之，我們繼續對借款人的素質以及他們應對利率上升和增長放緩的經濟環境的能力充滿信心。

On Page 9, credit normalization is a phrase that we've heard a lot this earnings season. You'll see a time series of our provision and our charge-offs and our allowance as a percentage of unguaranteed loans. COVID created an unusual period where reserves quickly built up only to decline as a percent of loans given the government's efforts to stabilize the economy and support small businesses.

在第 9 頁，信用正常化是我們在本財報季經常聽到的一個詞。您會看到我們的撥備和沖銷的時間序列，以及我們的津貼佔無擔保貸款的百分比。 COVID 創造了一個不尋常的時期，由於政府努力穩定經濟和支持小企業，儲備迅速增加，但佔貸款的百分比卻下降了。

Over the last year, we've largely seen our reserve levels return to pre-pandemic levels, although given our growth, we did not release any reserves like many did in the industry. Again, in this quarter, our provision significantly outpaced our charge-offs primarily to support our continued loan growth.

在過去的一年裡，我們基本上看到我們的儲備水平恢復到大流行前的水平，儘管考慮到我們的增長，我們沒有像業內許多人那樣釋放任何儲備。同樣，在本季度，我們的準備金大大超過了我們的沖銷，主要是為了支持我們持續的貸款增長。

Overall, we feel like we're reaching a stable level of reserves, given what we see in the macro environment. Over the past 2 months, banks' balance sheets have been tested, and I'm proud to say that we passed the test with flying colors. While we expect to see some increased competition in the near term on deposits, overall, the opportunity for us to serve small businesses is as robust as ever and we're excited as ever to continue on our mission.

總體而言，鑑於我們在宏觀環境中看到的情況，我們感覺我們正在達到穩定的儲備水平。在過去的兩個月裡，銀行的資產負債表受到了考驗，我很自豪地說，我們以優異的成績通過了考驗。雖然我們預計短期內存款方面的競爭會加劇，但總的來說，我們為小企業提供服務的機會一如既往地強勁，我們一如既往地興奮地繼續我們的使命。

Your turn, BJ.

輪到你了，BJ。

All right. Thanks, Huntley and Chip. Good morning, everybody. Let's start a discussion on earnings on Slide 11 with a recap of the major drivers in Q1. And to state the obvious, this was quite a quarter for the banking industry. And for Live Oak, it was really the tale of two distinct phases, January 1 through about March 8 and March 8 through March 31.

好的。謝謝，亨特利和奇普。大家早上好。讓我們開始討論幻燈片 11 上的收益，並回顧一下第一季度的主要驅動因素。顯而易見的是，這對銀行業來說是相當大的四分之一。對於 Live Oak 來說，這實際上是兩個不同階段的故事，1 月 1 日至 3 月 8 日左右，以及 3 月 8 日至 3 月 31 日。

In the first phase through early March, we saw continued strong customer loan and deposit growth, continued improvement in the secondary market environment for gain on sale premiums and asset marks, good expense discipline and stable credit quality.

在截至 3 月初的第一階段，我們看到客戶貸款和存款持續強勁增長，二級市場銷售溢價和資產標記收益的環境持續改善，良好的支出紀律和穩定的信用質量。

In the second phase, post the industry panic of the SVB and Signature issues, we saw significant reversals of secondary market pricing improvement we had been experienced -- experiencing, and we took action to further ensure the safety of our customers and our balance sheet. So all of that netted to not a lot of earnings in the quarter, but actions we have taken to ensure safety and soundness, coupled with our strong customer growth, puts us on a path to much improved earnings trajectory going forward.

在第二階段，在 SVB 和 Signature 問題引起行業恐慌之後，我們看到了二級市場定價改善的重大逆轉——我們正在經歷，我們採取行動進一步確保客戶和資產負債表的安全。因此，所有這些都在本季度淨賺了不多的收益，但我們為確保安全和穩健而採取的行動，加上我們強勁的客戶增長，使我們走上了一條大大改善未來收益軌蹟的道路。

I'll quickly hit some highlights here on Slide 11, but get into a bit more detail on each over the next several slides. Our loan production engine continues to generate profitable growth with the $1 billion in loan production in the quarter being the highest Q1 production level in the history of Live Oak at average yields of 8.54% versus current portfolio yield of 7% and driving loan growth up 4% quarter-over-quarter and 21% year-over-year.

我將在幻燈片 11 的此處快速突出一些亮點，但在接下來的幾張幻燈片中對每個亮點進行更詳細的介紹。我們的貸款生產引擎繼續產生盈利增長，本季度 10 億美元的貸款生產是 Live Oak 歷史上第一季度的最高生產水平，平均收益率為 8.54%，而目前的投資組合收益率為 7%，推動貸款增長 4環比增長 %，同比增長 21%。

As Huntley said, deposit growth was up nicely as well. The customer deposit growth was still up almost 3% in the quarter despite the March disruption and continues to grow nicely even through April tax season.

正如亨特利所說，存款增長也很好。儘管 3 月份出現中斷，但本季度客戶存款仍增長了近 3%，並且即使在 4 月份的稅收季節也繼續保持良好增長。

I'll get into a bit more detail on our NIM compression this quarter in a few minutes, but we'll say that while through -- while the trial of the NIM is now lower due to industry stress in March, the resiliency of our NIM and resulting net interest income in the second half of the year should be aided by the strong net loan growth, higher loan production yields we are booking and an anticipated flattening of deposit costs.

我將在幾分鐘內詳細介紹本季度的 NIM 壓縮，但我們會說，雖然由於 3 月份的行業壓力，NIM 的試用現在較低，但我們的彈性今年下半年的 NIM 和由此產生的淨利息收入應該受到強勁的淨貸款增長、我們預訂的更高貸款生產收益率以及預期的存款成本趨平的幫助。

Expenses are moderating as we discussed on the fourth quarter call, and we expect further discipline here throughout the rest of the year. On reserves, we leaned into the provision for both growth, which I consider good provision and conservatism given the economic environment.

正如我們在第四季度電話會議上討論的那樣，費用正在減少，我們預計在今年餘下的時間裡，這裡會有進一步的紀律處分。在儲備方面，我們傾向於為增長提供準備金，我認為考慮到經濟環境，這是良好的準備金和保守主義。

And finally, the impacts of those notable items, which I'll hit on the next slide, had a pretty outsized impact of about $0.20 in the quarter.

最後，我將在下一張幻燈片中提到的那些值得注意的項目的影響在本季度產生了大約 0.20 美元的相當大的影響。

Turning to Slide 12. Let's take a look at those notable items that added up to that $0.20. In noninterest income, we had 2 notable items, the largest of which was for our loans held at fair value, which are marked at the end of each quarter. Given the disruption in March, we saw a significant swing in that valuation in just 30 days. We now have roughly a 5% mark on that portfolio, over 2x our current allowance for credit loss. So this seems quite conservative.

轉到幻燈片 12。讓我們看一下加起來達到 0.20 美元的那些值得注意的項目。在非利息收入中，我們有 2 個值得注意的項目，其中最大的是我們以公允價值持有的貸款，在每個季度末標記。鑑於 3 月份的中斷，我們在短短 30 天內就看到了該估值的大幅波動。我們現在對該投資組合大約有 5% 的標記，超過我們當前信用損失準備金的 2 倍。所以這看起來很保守。

In noninterest expense, we refined our assumptions to be more conservative in how we reserve for unfunded commitments, resulting in a onetime step-up of $2.4 million.

在非利息支出方面，我們改進了我們的假設，以便在我們如何為無資金承諾準備金方面更加保守，從而導致一次性增加 240 萬美元。

And finally, we had a discrete tax item of $2.8 million, which resulted in an abnormally high effective tax rate in the quarter, which we expect will normalize into the 15% to 20% range over the course of the year.

最後，我們有一個 280 萬美元的離散稅項，這導致該季度的有效稅率異常高，我們預計該稅率將在全年正常化至 15% 至 20% 的範圍內。

Turning to Slide 13. Our $1 billion of loan production in the quarter was again diverse across multiple areas with particular strength in our middle-market sponsor finance vertical, solar vertical and numerous small business areas. As others pull back on lending, we expect to see good opportunities for new business going forward.

轉到幻燈片 13。我們在本季度的 10 億美元貸款生產再次在多個領域多樣化，在我們的中間市場贊助商金融垂直、太陽能垂直和眾多小型企業領域尤其強大。隨著其他人撤回貸款，我們預計未來會看到新業務的良好機會。

Let's turn to our net interest income and margin trends on Slide 14. Given the market disruption and the decline in our NIM this quarter, I'll go through the dynamics in a bit more detail than usual. You may recall that in a response to a question on the fourth quarter earnings call about our NIM in 2023, I said that deposit pricing ramped up significantly in the back half of '22 and showed no signs of slowing. Therefore, we expected to see downward pressure on the NIM in the first half of the year because the accelerated deposit pricing would be more rapid than the loan repricing.

讓我們轉向幻燈片 14 上的淨利息收入和利潤率趨勢。鑑於本季度的市場混亂和我們 NIM 的下降，我將比平時更詳細地介紹動態。您可能還記得，在回答關於我們 2023 年 NIM 的第四季度財報電話會議的問題時，我說存款定價在 22 年下半年大幅上漲，並且沒有放緩的跡象。因此，我們預計上半年 NIM 將面臨下行壓力，因為加速存款定價將比貸款重新定價更快。

In the back half of the year, however, as our loan repricing flowed through the balance sheet and the Fed near the end of its rate increase cycle, we would expect NIM expansion. All of those things are still true, but the March industry stress further increased deposit pricing pressures in the near term. But the loan repricing tailwinds are still to come, which should help with NIM improvement in the back half of the year.

然而，在今年下半年，隨著我們的貸款重新定價通過資產負債表流動，美聯儲接近加息週期結束，我們預計 NIM 會擴張。所有這些仍然是正確的，但 3 月份的行業壓力在短期內進一步增加了存款定價壓力。但貸款重新定價的利好因素仍未到來，這應該有助於今年下半年 NIM 的改善。

Said a different way, while we expected a V-shape to our NIM trajectory in 2023, given recent events and our desire to ensure continued customer deposit growth, the decline is steeper than we expected in the first half. However, we still anticipate steady improvement in the NIM and net interest income in the second half of '23.

換句話說，雖然我們預計 2023 年我們的 NIM 軌跡將呈 V 形，但考慮到最近發生的事件以及我們希望確保客戶存款持續增長的願望，下降幅度比我們上半年預期的要大。但是，我們仍然預計 23 年下半年 NIM 和淨利息收入將穩步改善。

So let's put a few data points behind what I just said. Let's take the deposit side first. You see that we provided more information on both Live Oak and the top digital competitors as it relates to deposit pricing in betas, along with the ending Fed funds' upper rate for reference.

所以讓我們把幾個數據點放在我剛才說的後面。讓我們先來看存款方面。你看到我們提供了更多關於 Live Oak 和頂級數字競爭對手的信息，因為它與貝塔存款定價有關，以及聯邦基金的最終利率上限以供參考。

Two things you will notice in the first half of 2022. Our quarterly and cumulative savings betas were tracking with the top digital competitors through the first half of '22. And second, it was at a lower beta, about 40% than what we have been consistently sharing with you about our expected through-the-cycle beta of about 70%.

在 2022 年上半年，您會注意到兩件事。我們的季度和累計儲蓄測試在 22 年上半年一直在追踪頂級數字競爭對手。其次，它的貝塔值較低，比我們一直與您分享的關於我們預期的整個週期貝塔值約 70% 的貝塔值低約 40%。

In the second half of 2022, deposit competition started to heat up significantly. Take a look at the 2 gray boxes on this slide. In the third quarter, top competitors started moving much higher at a 78% beta in Q3 '22, as you can see in the gray box. Our deposit growth trajectory, however, was still strong and fully supportive of our loan growth. So we remain disciplined about rate increases and our beta remained lower at 63%.

2022年下半年，存款競爭開始明顯升溫。看看這張幻燈片上的 2 個灰色框。在第三季度，頂級競爭對手在 22 年第三季度開始以 78% 的貝塔率走得更高，正如您在灰色框中看到的那樣。然而，我們的存款增長軌跡仍然強勁，並充分支持我們的貸款增長。因此，我們對加息保持紀律，我們的貝塔值保持在 63% 的較低水平。

In the fourth quarter, however, top competitors moved up at almost 100% beta. We had to move accordingly to maintain our balanced growth. And in the first quarter, we saw moderation in deposit rate movements from competitors with very little movement through mid-March. And we were growing our customer deposits on our desired pace, so we had no expectation of moving deposit rates up in Q1.

然而，在第四季度，頂級競爭對手的貝塔率幾乎達到了 100%。我們必須相應地採取行動以保持我們的平衡增長。在第一季度，我們看到競爭對手的存款利率變動有所緩和，到 3 月中旬幾乎沒有變動。我們正在以我們期望的速度增加客戶存款，因此我們沒有期望在第一季度提高存款利率。

When the industry crisis hit in mid-March and we saw customer outflows, we decided to move proactively and aggressively to reverse the trends we were seeing, moving savings rates up a full 50 basis points to move modestly ahead of top digital competitors. As you can see, it worked quite well to put us back on a positive customer deposit growth path. So we sit here today at a modestly higher through-the-cycle beta of about 74% versus the 70% or slightly less we had expected, but are back on track for healthy customer deposit growth to support our continued loan growth.

當行業危機在 3 月中旬襲來並且我們看到客戶外流時，我們決定採取積極主動的行動來扭轉我們所看到的趨勢，將儲蓄率提高整整 50 個基點，以適度領先於頂級數字競爭對手。正如您所看到的，它非常有效地讓我們回到了積極的客戶存款增長道路上。因此，我們今天坐在這裡的整個週期貝塔係數略高於 74%，而我們預期為 70% 或略低，但我們又回到了健康的客戶存款增長軌道上，以支持我們持續的貸款增長。

Now let's take a look at the loan side. Here, we provided you with an additional data point, our loan production yields from Q1. I'll reference that in a minute. Our loan yields have been moving up nicely as you can see in the table, but obviously cannot move as rapidly as the deposit betas we just discussed as about 40% of our current loan portfolio is variable rate, but 2 points to make on loan yields going forward.

現在讓我們來看看貸款方面。在這裡，我們為您提供了一個額外的數據點，即我們第一季度的貸款生產收益率。我會在一分鐘內參考。正如您在表中看到的那樣，我們的貸款收益率一直在上升，但顯然不能像我們剛剛討論的存款貝塔那樣快速上升，因為我們目前的貸款組合中約有 40% 是浮動利率，但貸款收益率有 2 點向前走。

Number one, loan production yields are currently being booked at rates greater than 150 basis points higher than our portfolio rates. See the [854] on new loan production yields in the upper right of the slide, versus the 7% on portfolio loan yields in the upper right of the table.

第一，貸款生產收益率目前的登記利率比我們的投資組合利率高出 150 個基點以上。請參閱幻燈片右上角的新貸款生產收益率 [854]，而表右上角的投資組合貸款收益率為 7%。

Second, the majority of our variable rate loans are quarterly, not monthly adjusting. This means that unlike deposit rate changes, which happened intra-quarter, we don't see intra-quarter increases in loan yields. They move up the full change in the prime rate over the prior quarter on the first day of the following quarter.

其次，我們的大部分浮動利率貸款都是按季度調整的，而不是按月調整的。這意味著與季度內發生的存款利率變化不同，我們沒有看到貸款收益率在季度內增加。他們在下一季度的第一天上調了上一季度最優惠利率的全部變化。

So as of April 1, our quarterly adjusting loans saw another 50 basis point increase in rate. Therefore, as our newer loans replace older loans over time, our portfolio yields will continue to rise, supporting stabilization, then improvement in our net spread.

因此，截至 4 月 1 日，我們的季度調整貸款利率又增加了 50 個基點。因此，隨著我們的新貸款逐漸取代舊貸款，我們的投資組合收益率將繼續上升，支持穩定，然後改善我們的淨利差。

So what does all this mean for the NIM? And how does that relate to the 3.50% to 3.75% range that had been discussed? Pre-crisis, we would have expected NIM to bottom out in the 3.50% to 3.55% range in Q1 and to end Q4 '23 in the 3.75% to 3.80% range, resulting in a full year 2023 NIM in the 3.65% range.

那麼這一切對 NIM 意味著什麼呢？這與已經討論過的 3.50% 到 3.75% 的範圍有什麼關係？危機前，我們預計 NIM 將在第一季度在 3.50% 至 3.55% 的範圍內觸底，並在 23 年第四季度結束時處於 3.75% 至 3.80% 的範圍內，從而導致 2023 年全年的 NIM 處於 3.65% 的範圍內。

With the March events driving deposit costs higher than anticipated, we now expect NIM to bottom out at about 25 to 30 basis points below the prior range one quarter later in Q2 and end Q4 '23 in the lower to middle part of the 3.50% to 3.75% range. This remains an uncertain environment, so let me be crystal clear and transparent with our current assumptions here.

由於 3 月的事件推動存款成本高於預期，我們現在預計 NIM 將在第二季度和第四季度末的第二季度末比先前範圍低約 25 至 30 個基點，處於 3.50% 至 3.50% 至3.75% 範圍。這仍然是一個不確定的環境，所以讓我對我們目前的假設非常清楚和透明。

The Fed moves 25 basis points in May, then pauses for the rest of the year. Deposit betas move in the 60% to 70% range for that increase, then flatten. Deposit growth continues on pace with the above beta assumptions. Healthy loan growth continues on pace with current pricing and no further major industry disruption related to deposits or liquidity.

美聯儲在 5 月移動 25 個基點，然後在今年剩餘時間暫停。存款貝塔值在 60% 到 70% 的範圍內移動，然後趨於平緩。存款增長繼續與上述貝塔假設保持一致。健康的貸款增長繼續與當前定價同步，並且沒有與存款或流動性相關的進一步重大行業中斷。

Remember that if we do decide to hold more on balance sheet liquidity, it may have an impact on the NIM, but will have minimal impact on net interest income. So to recap, deeper V in NIM trajectory in the first half of the year for more rapid deposit rate changes due to the industry stress events, but NIM and net interest income improvement in the back half of the year as deposit costs moderate, loan yields continue to improve and earning assets continue to grow. I hope this helps.

請記住，如果我們決定在資產負債表上持有更多流動性，可能會對 NIM 產生影響，但對淨利息收入的影響微乎其微。因此，回顧一下，由於行業壓力事件，上半年 NIM 軌跡中的 V 更深，存款利率變化更快，但由於存款成本適度，貸款收益率，NIM 和淨利息收入在下半年有所改善持續改善，盈利資產持續增長。我希望這有幫助。

Let's turn to Slide 15 and take a look at noninterest income trends. As I mentioned before, we have been seeing improvement in secondary market conditions, premiums and valuations before the mid-March events. Our SBA sales activity increased in Q1, as did our gain on sale premium resulting in $10 million in net gain on sale income versus $7 million in Q4. Though the majority of what we sold was variable rate, we did see some fixed rate SBA sales activity, which was encouraging. And all of our sales activity occurred before mid-March.

讓我們轉到幻燈片 15，看看非利息收入趨勢。正如我之前提到的，在 3 月中旬事件發生之前，我們一直看到二級市場狀況、溢價和估值有所改善。我們的 SBA 銷售活動在第一季度增加，我們的銷售溢價收益也增加了 1000 萬美元的銷售收入淨收益，而第四季度為 700 萬美元。儘管我們銷售的大部分產品都是浮動利率，但我們確實看到了一些固定利率 SBA 銷售活動，這令人鼓舞。我們所有的銷售活動都發生在 3 月中旬之前。

As you can see in the upper right, from February 28 to March 31, our servicing asset reval and fair value mark was down almost $6 million or over $6 million, reversing a net gain position we had on those assets as of the end of February. While there will be continued variability as these assets are valued quarterly based on market pricing, spot rates on 3/31 were obviously heavily influenced by the events at mid-March, but we do not expect this level of volatility going forward.

正如您在右上角看到的，從 2 月 28 日到 3 月 31 日，我們的服務資產重估和公允價值下降了近 600 萬美元或超過 600 萬美元，扭轉了截至 2 月底我們在這些資產上的淨收益頭寸.由於這些資產是根據市場定價按季度估值的，因此會有持續的變化，3/31 的即期匯率顯然受到 3 月中旬事件的嚴重影響，但我們預計未來不會出現這種程度的波動。

Turning to expenses on Slide 17. As we discussed on the fourth quarter call, we have worked through what I call our hiring bubble, first, to rightsize our lender support to accommodate the significant step-up in balance sheet growth over the past few years. And second, to accelerate our technology build-out in 2022, thanks to the Finxact gain. Going forward, while we will continue to be opportunistic on hiring for revenue producers, we are tightly managing our expense growth to improve our operating leverage.

轉向幻燈片 17 上的支出。正如我們在第四季度電話會議上討論的那樣，我們首先通過我所說的招聘泡沫來調整我們的貸方支持以適應過去幾年資產負債表增長的顯著增長.其次，得益於 Finxact 的收益，在 2022 年加快我們的技術建設。展望未來，雖然我們將繼續在招聘收入生產者方面保持機會主義，但我們正在嚴格管理我們的費用增長以提高我們的經營槓桿。

Our core expenses were essentially flat to Q4 with our headcount up only 7 people or 1%. We expect continued lower levels of hiring and strong expense discipline going forward.

我們的核心支出與第四季度基本持平，員工人數僅增加 7 人或 1%。我們預計未來將繼續降低招聘水平和嚴格的費用紀律。

Turning to credit trends on Slide 18. As Chip and Huntley discussed earlier, credit metrics remain quite strong. We continue to actively monitor the existing portfolio and do not currently see any glaring weak spots. Past dues are down and nonaccruals remain quite low. You can see that the credit quality trends across our 3 business segments are quite strong as well. And about $5 million of the $6.7 million net charge-offs in the quarter were driven by 2 relationships, leaving only $1.7 million of net charge-offs across the entire rest of the $8 billion portfolio. 2 relationships is not a trend. Steve can speak more on these and the overall strength of our portfolio during Q&A.

轉向幻燈片 18 上的信用趨勢。正如 Chip 和 Huntley 之前討論的那樣，信用指標仍然非常強勁。我們繼續積極監控現有的投資組合，目前沒有看到任何明顯的弱點。過去的會費減少了，非應計費用仍然很低。您可以看到我們 3 個業務部門的信用質量趨勢也非常強勁。本季度 670 萬美元的淨沖銷中約有 500 萬美元是由 2 種關係驅動的，在其餘 80 億美元的投資組合中，僅留下 170 萬美元的淨沖銷。 2 關係不是趨勢。史蒂夫可以在問答期間更多地談論這些以及我們投資組合的整體實力。

Yet the provision remained flat as we leaned into building reserves for both the new loan growth and continued caution about the future economic outlook, our reserves to unguaranteed loans remain well above the industry.

然而，由於我們傾向於為新貸款增長和對未來經濟前景的持續謹慎而建立準備金，準備金保持不變，我們的無擔保貸款準備金仍遠高於行業。

And about $7 million of our $19 million provision was for net new loan growth. That, to me, is good provision. Said a different way, if we weren't growing loans and customer relationships, our provision would have been $7 million lower. I'd rather be growing profitable loan relationships. With what we see, combined with a conservative outlook, we currently feel very well positioned with our reserve levels at over 2x industry averages.

在我們 1900 萬美元的準備金中，約有 700 萬美元用於新增貸款淨增長。對我來說，這是很好的規定。換句話說，如果我們沒有增加貸款和客戶關係，我們的準備金就會減少 700 萬美元。我寧願發展有利可圖的貸款關係。根據我們所看到的情況，再加上保守的前景，我們目前感覺非常有利，我們的儲備水平超過行業平均水平的 2 倍。

Slide 18 shows our overall capital strength, which gives us great comfort that we are well positioned to thrive in whatever environment lies ahead.

幻燈片 18 顯示了我們的整體資本實力，這讓我們感到非常欣慰，因為我們有能力在未來的任何環境中蓬勃發展。

And to wrap up on Slide 19, here's what we are focused on for the rest of '23. We have and will always start with soundness and that has served us quite well in the current industry stress. We will continue to do what we do well, know our customers and keep our balance sheet strong.

總結幻燈片 19，這是我們在 23 年剩餘時間里關注的重點。我們已經並將始終從穩健開始，這在當前的行業壓力下為我們提供了很好的服務。我們將繼續做我們擅長的事情，了解我們的客戶並保持我們的資產負債表強勁。

On the profitability front, we are absolutely focused on controlling what we can control, which is making high-quality loans, staying disciplined on pricing and managing our expenses very tightly.

在盈利能力方面，我們絕對專注於控制我們可以控制的事情，即發放高質量貸款、嚴格定價和嚴格管理我們的費用。

And on the growth front, we remain incredibly excited about the power of our business model. Our lending businesses continue to provide excellent value to our customers, resulting in strong loan production and growth and we look for opportunities every day to add more revenue producers to our attractive platform.

在增長方面，我們對我們商業模式的力量仍然非常興奮。我們的貸款業務繼續為我們的客戶提供卓越的價值，導致強勁的貸款生產和增長，我們每天都在尋找機會為我們有吸引力的平台增加更多的收入來源。

We have our first 10 customers up and running on our new treasury management platform with strong reviews. More are being added each day, and this is a big step in our journey towards fuller customer relationships and attractive lower-cost operating accounts, our people are ready to make this happen. And we still remain very confident that our embedded banking platform and all the technology investments that we are making are going to be absolute game changers in this industry.

我們的前 10 位客戶在我們新的資金管理平台上啟動並運行，並獲得了好評。每天都在增加更多，這是我們朝著更全面的客戶關係和有吸引力的低成本運營賬戶邁出的一大步，我們的員工已準備好實現這一目標。我們仍然非常有信心，我們的嵌入式銀行平台和我們正在進行的所有技術投資將徹底改變這個行業的遊戲規則。

With that, we can open it up for questions.

有了它，我們就可以打開它來提問了。

(Operator Instructions) And your first question comes from Brandon King from Truist Securities.

（操作員說明）您的第一個問題來自 Truist Securities 的 Brandon King。

So just wanted to start on credit and the 2 relationships, you could elaborate on that to give some more context behind those 2 relationships.

所以只想從信用和 2 種關係開始，您可以詳細說明，以提供這 2 種關係背後的更多背景信息。

Certainly, Brandon. This is Steve Smits. Yes, I'll talk about the first was a direct-to-consumer e-commerce business and had very specific challenges around the opt out. Most of their marketing was focused on Facebook e-commerce marketing. So with changes in the opt-out rules around that, that had a material impact to their revenue. So I consider that very much isolated.

當然，布蘭登。這是史蒂夫·史密斯。是的，我將談論第一個是直接面向消費者的電子商務業務，並且在選擇退出方面面臨非常具體的挑戰。他們的大部分營銷都集中在 Facebook 電子商務營銷上。因此，隨著選擇退出規則的變化，這對他們的收入產生了重大影響。所以我認為這非常孤立。

Also note that we have very small exposure to businesses whose primary revenue driver is direct-to-consumer e-commerce, less than half a dozen relationships to be more specific. Every one of those is actually doing quite well with good cash flow.

另請注意，我們對主要收入驅動因素是直接面向消費者的電子商務的企業的接觸非常少，更具體地說，不到六個關係。其中每一個實際上都做得很好，現金流也很好。

The second is very specific to supply chain challenges and more specifically, lumber costs. So at the height of lumber costs, this business suffered a significant deterioration in their COGS, which they simply were not able to work through. So that one we charge down. So I would conclude that both are very much isolated situations. Overall, I don't see any systemic trends that are concerning to me.

第二個是非常具體的供應鏈挑戰，更具體地說，木材成本。因此，在木材成本最高的時候，這家企業的銷貨成本大幅下降，他們根本無法解決這個問題。這樣我們就可以充電了。所以我會得出結論，兩者都是非常孤立的情況。總的來說，我沒有看到任何與我有關的系統性趨勢。

Got it. Got it. And I guess with that not being systemic, would you, I guess, assume that charge-offs kind of go lower from here throughout the year?

知道了。知道了。而且我想這不是系統性的，我猜你會假設全年的沖銷率會從這裡下降嗎？

While I don't have a crystal ball and there's always a chance for an unforeseen, right now, I feel very confident that the portfolio is quite stable. I also feel very confident that we -- for those folks that are newer to the Live Oak, I did want to stress comments made both by Huntley as well as BJ during his comments is our very robust servicing philosophy and methodology. So we say incredibly close to our customers. So I feel like I have a very good pulse on the health of our borrowers and can say that I feel the portfolio is quite stable and actually doing quite...

雖然我沒有水晶球，而且總是有不可預見的機會，但現在，我非常有信心投資組合非常穩定。我也非常有信心，對於那些剛接觸 Live Oak 的人，我確實想強調 Huntley 和 BJ 在他的評論中發表的評論是我們非常強大的服務理念和方法。所以我們說非常貼近我們的客戶。所以我覺得我對借款人的健康狀況有很好的把握，可以說我覺得投資組合非常穩定，實際上做得很好......

Okay. And then just one more question. Could you give us an update on the small business checking and treasury management products? And given the events that happened in March, does that provide even more challenges? Or could you see more opportunities just given all the turmoil in the banking industry?

好的。然後還有一個問題。您能否向我們介紹有關小型企業檢查和資金管理產品的最新信息？考慮到 3 月份發生的事件，這是否會帶來更多挑戰？還是鑑於銀行業的所有動盪，您能否看到更多機會？

Sure, Brandon. It's Huntley. I'll start and others can chime in. So we are, as BJ said, live with a full service checking operating account for small business with a full set of treasury management capabilities. We've got our first 10 customers live on it, moving money and we're really excited. That's through our partner, Apiture, who you all know we have investment and they provide the front-end service. They do that to a couple of hundred banks who use this product. So we're really excited, and we're onboarding more customers, and we're -- we obviously were somewhat strategic in how quickly we came to market because we wanted to make sure it worked, and we're going to that with our first set of customers. And throughout the year, we'll continue to ramp and do more. So we're really, really excited that we've gotten to where we are.

當然，布蘭登。是亨特利。我會開始，其他人可以插話。因此，正如 BJ 所說，我們擁有一個為小型企業提供全面服務的支票運營賬戶，具有全套的資金管理能力。我們已經讓我們的前 10 位客戶靠它生活，轉移資金，我們真的很興奮。這是通過我們的合作夥伴 Apiture 實現的，眾所周知，我們對其進行了投資，他們提供前端服務。他們對使用該產品的數百家銀行這樣做。所以我們真的很興奮，我們正在吸引更多的客戶，而且我們 - 我們顯然在我們進入市場的速度方面具有一定的戰略意義，因為我們想確保它有效，我們將與我們的第一批客戶。全年，我們將繼續增加並做更多事情。所以我們真的非常興奮，我們已經到了我們現在的位置。

In terms of the industry, I think there's a couple of things that we need to think about. One, as Chip said, the need to pay competitive rates. We think is there and actually is an advantage for us because we've got a savings product that is competitive and that may be an attractor that then that customer comes and does the rest of their banking through their operating account with us. So we like that.

就行業而言，我認為我們需要考慮幾件事。其一，正如 Chip 所說，需要支付有競爭力的價格。我們認為存在並且實際上對我們來說是一個優勢，因為我們有一個具有競爭力的儲蓄產品，這可能是一個吸引者，然後客戶會通過他們在我們這裡的經營賬戶來完成他們剩下的銀行業務。所以我們喜歡這樣。

On the flip side, we saw customers who left us to go to one of the largest banks because they felt like there was that implicit too big to fail guarantee. And so will there be people who are less willing to transfer to a new bank? Does it reduce some of the switching? Maybe. We haven't seen it yet, but we're really, really early days.

另一方面，我們看到客戶離開我們去了最大的銀行之一，因為他們覺得隱含的擔保太大而不能倒閉。那麼會不會有人不願意轉賬到新的銀行呢？它會減少一些開關嗎？或許。我們還沒有看到它，但我們真的，真的很早。

Your next question comes from Crispin Love from Piper Sandler.

你的下一個問題來自 Piper Sandler 的 Crispin Love。

First on growth. I'm just kind of curious what your views on growth are in the current environment. Based on the prepared remarks, you seem to be remaining constructive on growth. But just curious, if you would expect any pullback or any deceleration in loan growth given the current environment? Or should it -- or do you believe you can still grow at kind of typical historical levels, especially as the SBA can have countercyclical tendencies?

首先是增長。我只是有點好奇您對當前環境下的增長有何看法。根據準備好的評論，您似乎對增長保持建設性態度。但只是好奇，在當前環境下，您是否預計貸款增長會出現任何回落或減速？或者它應該 - 或者你相信你仍然可以在某種典型的歷史水平上增長，特別是因為 SBA 可能具有反週期趨勢？

Well, I'll start and then you guys can add on. It seems that when we talk to our leaders in the sales division that they were saying as late as yesterday, the phones are beginning to ring. I take that as the credit guys running other banks are tightening the screws of [we bet]. And we have seen this from time to time over the last 15 years. So we will be in the market. And I think if we look at the pipe guys, it is relatively strong. I mean it's -- these -- our guys are not backing off their projections from 120 days ago.

好吧，我會開始，然後你們可以添加。好像跟我們銷售部的領導說昨天才說的，電話就開始響了。我認為這是因為經營其他銀行的信貸人員正在收緊[我們打賭]的螺絲釘。在過去的 15 年裡，我們不時看到這種情況。所以我們將進入市場。而且我認為，如果我們看一下管道人，它就比較強大。我的意思是——這些——我們的人並沒有放棄他們 120 天前的預測。

Yes. No, that's right. I mean, I think we have seen some situations where a buyer and seller can agree on value given the changing market conditions where somebody decides to pause on an expansion project. So that is a bit of a headwind. But to Chip's point, we're also seeing perhaps more opportunities in the space. And in some areas more than others, it hasn't been sort of broad across the board. So we'll just be opportunistic.

是的。不，沒錯。我的意思是，我認為我們已經看到一些情況，在這種情況下，鑑於不斷變化的市場條件，有人決定暫停擴建項目，買賣雙方可以就價值達成一致。所以這有點不利。但就 Chip 的觀點而言，我們在該領域也看到了更多機會。在某些領域比其他領域更多，它還沒有全面廣泛。所以我們只是機會主義。

Great. I appreciate the commentary there. And then just on SBA gain on sale margin trends, I'm just kind of curious from kind of over the first quarter and then through April, how they've been as margins likely compress kind of following the bank turmoil and then just kind of trends in early April on gain on sale margin?

偉大的。我很欣賞那裡的評論。然後就 SBA 的銷售利潤率趨勢而言，我只是有點好奇，從第一季度到 4 月份，他們是如何在銀行動蕩之後利潤率可能壓縮的，然後只是4 月初銷售利潤率的趨勢？

And then just relatedly, do you expect any knock-on effects in SBA secondary markets, just from the bank closures earlier in the first quarter that could impact SBA gain on sale over the near or longer term?

然後與此相關的是，您是否預計 SBA 二級市場會產生任何連鎖反應，僅來自第一季度早些時候的銀行關閉可能會影響 SBA 在近期或長期內的銷售收益？

Cris, this is BJ. So unfortunately, the mid-March stress has kind of stunted the improvement that we had been seeing over the course of the year in terms of premiums. Premiums were up probably 100 to 200 basis points or so from late last year. As I mentioned in my prior comments, we actually sold some fixed rate SBA, which essentially had been closed for several quarters. So the markets were really starting to heal up through mid-March, which was encouraging to see. And you actually saw from fourth to first quarter, our average net gain on premiums was actually up from quarter-to-quarter. That kind of backed up and paused as of the end of the quarter. Still a little bit of uncertainty through April.

克里斯，這是 BJ。因此，不幸的是，3 月中旬的壓力阻礙了我們在一年中看到的保費方面的改善。與去年底相比，保費可能上漲了 100 到 200 個基點左右。正如我在之前的評論中提到的，我們實際上出售了一些固定利率 SBA，這些 SBA 基本上已經關閉了幾個季度。因此，市場在 3 月中旬真正開始復蘇，這令人鼓舞。你實際上看到，從第四季度到第一季度，我們的平均保費淨收益實際上是環比上升的。截至本季度末，這種情況有所回落並暫停。整個四月仍有一點不確定性。

There's certain disruption in the secondary markets and which buyers are going to be there going forward, et cetera.

二級市場存在一定的中斷，哪些買家將在那裡前進，等等。

But we're hopeful that the further we get away from mid-March, things start to normalize, we do expect premiums to continue to improve over the second half of the year and that's what our expectation is.

但我們希望離 3 月中旬越遠，事情就會開始正常化，我們確實預計下半年保費會繼續提高，這就是我們的預期。

Your next question comes from Steven Alexopoulos from JPMorgan.

你的下一個問題來自摩根大通的 Steven Alexopoulos。

BJ, I want to make sure I have the new NIM guidance correct because we're calculating different numbers on my team. What are you saying for the 2Q NIM?

BJ，我想確保我的新 NIM 指南是正確的，因為我們正在計算我團隊的不同數字。你對 2Q NIM 有什麼看法？

Down 20...

下降 20...

Like the range.

喜歡範圍。

Yes, yes. So whereas we thought the bottom end of the range before was 3.50% to 3.75%. We think we bottomed out 25 to 30 basis points below that range, but then come back in the second half of the year and more in the lower to middle part of that 3.50% to 3.75% range.

是的是的。因此，我們之前認為範圍的底端是 3.50% 至 3.75%。我們認為我們在該範圍下方觸底 25 至 30 個基點，但隨後在今年下半年回升，並且更多地處於 3.50% 至 3.75% 範圍的中低端。

Okay. Did you give a range for 2Q, where you think -- basically, it's the exit margin out of this quarter, right, given you took up savings rates. But let me just ask what are you thinking for the second quarter margin? Because it sounds like you think NIM will drop in 2Q and then improve in the second half, right? That's the outlook.

好的。你是否給出了第二季度的範圍，你認為 - 基本上，這是本季度的退出利潤率，對吧，考慮到你採用了儲蓄率。但讓我問一下你對第二季度利潤有何看法？因為聽起來您認為 NIM 會在 2Q 下降然後在下半年改善，對嗎？這就是前景。

Yes, yes. So the margin will be down in the second quarter because the 50 basis point increase we made in mid-March is going to have an outsized impact in the second quarter. So second quarter NIM will be down. But in the second half, loan yields will start to flow through the balance sheet. Deposit costs will flatten is our expectation. And by fourth quarter, the margin will go back up towards the lower to middle part of that 3.50% to 3.75% range.

是的是的。因此，第二季度的利潤率將下降，因為我們在 3 月中旬增加 50 個基點將對第二季度產生巨大影響。所以第二季度NIM會下降。但在下半年，貸款收益率將開始流經資產負債表。存款成本將趨於平緩是我們的預期。到第四季度，利潤率將回升至 3.50% 至 3.75% 區間的中低端。

Okay. That's helpful. And then within that, what level do you assume -- again, calling out the scenario you talked about for the Fed right, one more hike and then we go -- they go to pause. What level do you see deposit cost peaking? It sounds like the timing of that -- well, I'm just going to ask you, where do you see deposit costs peaking under that scenario, which is within the guidance you just gave us? And what's the timing to see the peak?

好的。這很有幫助。然後在此範圍內，你假設什麼水平 - 再次，調出你為美聯儲談論的情景，再次加息，然後我們開始 - 他們會暫停。您認為存款成本達到什麼水平？這聽起來像是時機 - 好吧，我只想問你，在你剛剛給我們的指導範圍內，你認為在那種情況下存款成本在哪里達到頂峰？什麼時候看到高峰？

Yes. So to have this flow through, I would see the peak based on the assumptions that I just gave in the third quarter, maybe the fourth quarter. But the real step-up would occur second quarter, moderation in third quarter and fourth quarter.

是的。因此，要實現這一流程，我會根據我剛剛在第三季度（也許是第四季度）給出的假設看到峰值。但真正的上升將發生在第二季度，第三季度和第四季度將出現放緩。

Got it. Okay. That's helpful. And then I want to shift to the reserve for a minute. So I don't know if you guys saw that Bank United did a nice job in their slide deck this week. They put out a stressed scenario for commercial real estate loans, which basically showed that in a period of stress, their reserve on commercial real estate would need to increase materially. I'm curious if you could share with us what does a stress scenario on the unguaranteed portion of your loans look like? And if that played out, are you already reserved for that? Or would the reserve need to materially increase?

知道了。好的。這很有幫助。然後我想轉移到預備隊一分鐘。所以我不知道你們是否看到 Bank United 本週在他們的幻燈片中做得很好。他們提出了商業地產貸款的壓力情景，基本上表明在壓力時期，他們的商業地產準備金需要大幅增加。我很好奇您是否可以與我們分享您貸款的無擔保部分的壓力情景是什麼樣的？如果那件事發生了，你是否已經對此有所保留？還是儲備需要大幅增加？

Yes, Steve, this is Steve Smits. I'll start. BJ, you can certainly add because we did run some stress scenarios. I will say that we feel that we are properly reserved for a rocky or macroeconomic environment. So we feel we are well reserved right now, barring any unforeseens. It would -- we did run stress on a number of factors that we considered would be pretty catastrophic.

是的，史蒂夫，這是史蒂夫·斯密茨。我會開始。 BJ，你當然可以添加，因為我們確實運行了一些壓力場景。我要說的是，我們覺得我們對動蕩的或宏觀經濟環境有適當的保留。所以我們覺得我們現在很保守，除非有任何意外。它會 - 我們確實對一些我們認為會非常災難性的因素施加壓力。

BJ, I don't recall the hand, but I think that we still came to the conclusion that it would be a huge material impact to provision expense going forward.

BJ，我不記得那手牌了，但我認為我們仍然得出結論，這將對未來的撥備費用產生巨大的實質性影響。

No, I think we -- I mean, maybe if we stressed it across primarily 4 different types of stresses. One was that prepays declined, meaning we had higher average loan balances and therefore had to hold more reserve. That was one. The second was that unemployment spiked over 200 basis points in a year from where we are today. The third was our probability of defaults went up about 30% or so across the board. The fourth was loss given defaults up 30% or so as well. We looked at those both in isolation and in total. And I think our reserve levels would have gone up if all of those things happen Armageddon, would be up about 20%. So not catastrophic at all. So like...

不，我認為我們——我的意思是，也許如果我們主要通過 4 種不同類型的壓力來強調它。一是預付款下降，這意味著我們的平均貸款餘額更高，因此不得不持有更多的準備金。那是一個。第二個是失業率在一年內飆升超過 200 個基點。第三是我們的違約概率全面上升了 30% 左右。第四個是違約損失也增加了 30% 左右。我們分別和整體地研究了這些。而且我認為，如果所有這些事情都發生在世界末日，我們的準備金水平將會上升，將上升約 20%。所以根本不是災難性的。那麼喜歡...

All of them played out, right?

都玩完了吧？

That's it. Every single one of them played out and played out in the next 3 quarters, which obviously is highly unlikely. So going back to Steve's point, we already have what we believe is some conservatism and thumb on the scale around PDs, LGDs, where we think prepays are, where we think unemployment is, et cetera. So we feel very well positioned with the reserve as we sit here today.

就是這樣。他們中的每一個都在接下來的 3 個季度中發揮並發揮作用，這顯然是極不可能的。所以回到史蒂夫的觀點，我們已經有了我們認為的一些保守主義和拇指圍繞 PD、LGD 的規模，我們認為預付款在哪裡，我們認為失業在哪裡，等等。因此，當我們今天坐在這裡時，我們對保護區的定位非常好。

Okay. That's terrific color. BJ, if I could squeeze one more in. Just following up on your answer to the earlier question on the gain on sale, so given that the market appears to be somewhat disrupted at least right now, do you think gain on sale revenue maybe goes back to where we were, I don't know, in the prior quarter, 4Q '22? Is that what you're thinking?

好的。那是很棒的顏色。 BJ，如果我能再擠一個。只是跟進你對之前關於銷售收益的問題的回答，所以考慮到市場至少現在似乎有些混亂，你認為銷售收益可能會消失嗎？回到我們的位置，我不知道，在上一季度，22 年第四季度？你是這麼想的嗎？

No. We -- so I do expect in the second half of the year continued premium improvement. I think that what we are producing is conducive to us being able to sell more in the secondary market. And what I mean by that is, I think in the quarter, over 80% of our SBA production was variable rate. Variable rate is still very attractive on the secondary market. And so as we have more variable FDA eligible loans coming into the company, we have more flexibility to sell. So we can sell more, even if there's a modest back up in premiums. If premium comes back, we can still sell a little bit more and at a higher premium. So all of that to say, I still feel good about the levels of gain on sale income that we're at in the first quarter. And hopefully, we continue to see growth and improvement over the course of the year.

不，我們 - 所以我確實希望在今年下半年保費繼續改善。我認為我們正在生產的產品有利於我們能夠在二級市場上銷售更多產品。我的意思是，我認為在本季度，我們超過 80% 的 SBA 生產是可變利率的。浮動利率在二級市場上仍然很有吸引力。因此，隨著我們有更多可變的符合 FDA 條件的貸款進入公司，我們有更大的銷售靈活性。因此，即使保費略有回升，我們也可以賣出更多。如果溢價回來，我們仍然可以以更高的溢價賣出更多。所以綜上所述，我仍然對第一季度的銷售收入增長水平感到滿意。希望我們在這一年中繼續看到增長和改進。

Your next question comes from David Feaster from Raymond James.

你的下一個問題來自 Raymond James 的 David Feaster。

Maybe just moving back to the checking and the treasury management initiative that we talked a bit about earlier, have your -- obviously, it's still early. Have your expectations changed for that at all? I mean we previously talked about maybe a couple of hundred million coming on by year-end. Is that still the target? Just kind of hearing your comments on deposit costs, it sounds like that may be reasonable. I'm just curious if that had changed at all.

也許只是回到我們之前談到的檢查和資金管理計劃，讓你 - 顯然，現在還為時過早。你的期望有沒有改變？我的意思是我們之前討論過到年底可能會有幾億美元。那還是目標嗎？只是聽聽您對存款成本的評論，聽起來這可能是合理的。我只是好奇這是否已經改變了。

So Huntley, you can take this. Let me just give you a little background on the product itself, David. So this product was created by Funds Express in 1997, which is now Apiture today. So those guys in Austin, Texas lifted and shifted all that code out of a data center in Austin and made it fundamentally cloud-native API first and transferred to AWS. Along the way, with the help of Terry Turner's back, right, who is a 10% equity holder-ish, is that about right? With Pinnacle loans and Apiture, right? His guys basically said, we need the software to do this, this and this. This is over the last 2 or 3 years. So as we were lifting and shifting that code to a next-generation environment, we did just that.

所以亨特利，你可以接受這個。大衛，讓我簡單介紹一下產品本身的背景。所以這個產品是Funds Express在1997年創建的，也就是今天的Apiture。因此，得克薩斯州奧斯汀的那些人將所有代碼從奧斯汀的數據中心提取並轉移出來，並首先從根本上使其成為雲原生 API，然後轉移到 AWS。一路走來，借助特里·特納的背影，對，誰是10%左右的股權持有者，是吧？有了 Pinnacle 貸款和 Apiture，對吧？他的手下基本上說，我們需要軟件來做這個、這個和這個。這是過去 2 或 3 年的情況。因此，當我們將該代碼提升並轉移到下一代環境時，我們就是這樣做的。

And then they begin to win awards, right? So selling others, I can't remember the name. So that is the product in the marketplace, primarily helping larger customers than ours. Our customers are mainly $2 million to $5 million revenue small businesses. Pinnacle's customers are substantially larger than that. So we have a lot of excess capability as our customers use that software and move up market. Huntley, you clean that up.

然後他們開始獲獎，對吧？所以賣給別人，名字記不住了。這就是市場上的產品，主要幫助比我們更大的客戶。我們的客戶主要是收入在 200 萬到 500 萬美元之間的小型企業。 Pinnacle 的客戶遠不止於此。因此，當我們的客戶使用該軟件並提升市場時，我們有很多過剩的能力。亨特利，你把它清理乾淨。

Yes. So David, to your question, look, I think that number seems about right. We are excited. We're still early days, but if we continue to lend out $1 billion a quarter and that's 500-plus new customers a quarter, those are great opportunities for us to convert on a proven platform. So I think our estimates still feel about right as we sit here in terms of what we're trying to do this year.

是的。所以大衛，對於你的問題，看，我認為這個數字似乎是正確的。我們很興奮。我們仍處於早期階段，但如果我們繼續每季度借出 10 億美元，即每季度有 500 多個新客戶，那麼這些都是我們在經過驗證的平台上進行轉換的絕佳機會。因此，我認為我們的估計仍然是正確的，因為我們坐在這裡就我們今年試圖做的事情而言。

Okay. That makes sense. And we talked about the tightening of credit may be pushing more folks in the SBA, but I think you still have a similar concept on the conventional side as well. Is that something that you're seeing? And maybe would you expect the proportion of conventional lending to increase? Or would you kind of expect it to stay relatively the same? And I guess, where are you seeing opportunities? Obviously, specialty finance, specifically sponsored finance was really strong. Just curious where you're seeing opportunities more on the lending side.

好的。這就說得通了。我們談到了信貸收緊可能會推動更多人加入 SBA，但我認為你在傳統方面也有類似的概念。那是你看到的東西嗎？也許您會期望傳統貸款的比例增加？還是您希望它保持相對不變？我想，你在哪裡看到機會？顯然，專業金融，特別是讚助金融真的很強大。只是好奇你在哪裡看到更多的貸款方面的機會。

Yes. I think the mix feels about right. You could make a case that we'd find more SBA opportunity. I think you can make a case to the contrary. Right now, it feels like the balance in the mix is about -- it's about what we're seeing, and we'll continue to as we look at pipelines.

是的。我認為混合感覺是正確的。你可以證明我們會找到更多的 SBA 機會。我認為你可以提出相反的理由。現在，感覺混合中的平衡是關於——這是關於我們所看到的，我們將在研究管道時繼續這樣做。

I think the area -- one of the areas that we think there's going to be some opportunity. Obviously, we're not in, as we mentioned, the office sort of commercial real estate space, but there are places that are the secondary and tertiary where some people paint real estate with a giant brush. And so maybe that's senior housing, maybe that's self-storage, places that fall into a real estate bucket. We look at them much more as operating businesses where we may find some incremental opportunities as folks pull back broadly speaking from real estate. So we're just kind of being opportunistic right now, and we'll take what comes.

我認為這個領域——我們認為會有一些機會的領域之一。顯然，正如我們提到的那樣，我們並沒有進入商業房地產空間的辦公室，但有些地方是二級和三級，有些人用巨型畫筆粉刷房地產。所以也許那是高級住房，也許那是自助存儲，屬於房地產桶的地方。我們更多地將它們視為經營業務，隨著人們從房地產中廣泛撤出，我們可能會發現一些增量機會。所以我們現在只是有點投機取巧，我們會接受未來的結果。

Okay. That's helpful. And then maybe if we could just touch on the tech investment side. I'm just curious what you're seeing there. Obviously, valuations in the market are still a bit challenged. But I mean, look, Canapi services saw nice growth this quarter. Just curious some of the trends that you're seeing on the tech investments and within Canapi.

好的。這很有幫助。然後也許我們可以談談技術投資方面。我只是很好奇你在那裡看到了什麼。顯然，市場估值仍面臨一些挑戰。但我的意思是，聽著，Canapi 服務在本季度取得了不錯的增長。只是好奇您在技術投資和 Canapi 內部看到的一些趨勢。

I would say that the guys at Canapi are still looking at 3 to 5 new opportunities a day. That said, somebody said earlier that those valuations of those businesses have dropped dramatically from 20x forward revenues to 6. And I would say that most of these companies are looking to trim overhead and get the profitability on their own. So we're being very circumspect, but they're tickled to death that our second fund is in the process of wrapping up. So we have about $800-plus million of dry powder to pick the winners. So, so far, so good.

我會說 Canapi 的人每天仍在尋找 3 到 5 個新機會。也就是說，有人早些時候說過，這些企業的估值已從預期收入的 20 倍急劇下降至 6 倍。我要說的是，這些公司中的大多數都在尋求削減管理費用並自行獲得盈利能力。所以我們非常謹慎，但他們對我們的第二隻基金正在收尾感到非常高興。所以我們有大約 800 多萬美元的干火藥來選出獲勝者。所以，到目前為止，一切都很好。

Does the SVB failure impact that business at all? Or I mean, maybe push more opportunities to you?

SVB 倒閉是否會影響該業務？或者我的意思是，也許會給你帶來更多機會？

To be determined. Hard to say there.

待定。那裡很難說。

There are no further questions at this time. I'll now turn it back for closing remarks.

目前沒有其他問題。我現在把它轉回去作結束語。

No closing remarks, folks. We'll see you in 90 days. Thanks for joining.

伙計們，沒有結束語。我們 90 天后見。感謝您的加入。

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.

女士們，先生們，今天的電話會議到此結束。我們感謝您的參與，並請您斷開線路。